INVESTMENT FOCUS
| INVESTMENT CRITERIA | |
| Merit seeks to invest in companies that demonstrate many of the following characteristics: | |
| Transaction Types | Management Buyouts, Recapitalizations, Acquisition Financings, Shareholder Liquidity Events, Growth Financings, and ESOPs |
| Investment Size | At least $15 million |
| Industries | Manufacturing, distribution, logistics and service businesses |
| Company Size |
Revenue of at least $25 million EBITDA of at least $5 million |
| Characteristics |
Experienced management team Strong cash flow Established industry Growing market share |
| Structure | Subordinated debt with current yield and equity participation; preferred and common equity considered |
| Involvement | Serve as board-level advisors rather than day-to-day managers or operators |
| Not Considered | Start-ups, turnarounds, real estate financings, specialty retailers, oil and gas opportunities |